If you have ever looked into managed services or any other information technology services, you have likely seen the term SLA, which stands for service level agreement. The information technology business is now primarily service-driven, but how can you guarantee that you are getting the best return on your IT service dollars? You need to measure service delivery and have recourse if commitments and promises aren’t met. That is done through the implementation of SLAs.
SLAs are an essential component of any technology outsourcing contract. Here is the information you need regarding service level agreements – how to draft them, and how to use them to ensure your levels of service are where they need to be.
Why Do We Need SLAs in Information Technology?
If physical hardware breaks, the solution is easy: repair or replace. If they are still covered under manufacturer warranties, there should be no added expense for your company, but if not, the cost will be your responsibility.
But what about the services you contract for? Hardware is easy to put parameters around, but services are a bit more difficult to deal with concretely. Who is responsible if services do not work out as everyone expected? These are the questions and issues that a service level agreement addresses. It is essentially a contract which defines the services the provider will deliver, what standards they are expected to meet, and what remedies the client has if the obligations are not met. For instance, SLAs are commonly used in guaranteeing uptime. Most offer 99.999% uptime for your network, which represents just 5 minutes of unplanned downtime per year. An SLA will put this guarantee in writing and outline the penalties the provide faces should the service level not be met.
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How Information Technology SLAs Are Used
Information technology SLAs assist in quantifying the delivery of information technology services, such as help desk support, on-demand security deployment and asset management. An SLA will also typically give the client the right to terminate if service level expectations and guarantees are consistently missed.
SLAs permit organizations to more concretely quantify IT services for the sake of budgeting, as well as strategic planning. By laying out exactly what each provider will deliver through an SLA, businesses avoid overspending on overlapping technologies or leaving essential services unprotected.
Did You Know? SLAs are typically created between a company and an external vendor, but can also be utilized between two departments in the same corporation.
Benefits of Service Level Agreements
Anyone who utilizes information technology services in any capacity will benefit from an SLA.
- Ease of Use: SLAs outline services clearly and in writing, making it easy to identify the best providers and potential shortfalls.
- Agility and scalability: SLAs can grow, move and scale with your business to meet changing IT requirements.
- Measurability: Metrics, responsibilities and expectations are clearly articulated, meaning that neither party can plead ignorance of the expectation level if there is a problem.
Most information service providers now have a standard SLA for potential customers. As with any contract, you should review carefully with legal counsel and ask for changes which you deem necessary for your organization.
Alliance IT is an information technology managed service provider based in Sarasota, Florida. We provide comprehensive services all businesses need to succeed. Call today for more information.
